Tom and Sandy have set up a sinking fund in order to have $21,000.00 in 5 years for their child's college education. How much should be paid monthly into an ordinary annuity earning 7.46% compounded monthly so that they reach their goal? How much interest is earned during the last year? (Note: Your answer is a dollar amount and should include a dollar sign)
Tom and Sandy have set up a sinking fund in order to have $21,000.00 in 5 years for their child's college education. How much should be paid monthly into an ordinary annuity earning 7.46% compounded monthly so that they reach their goal? How much interest is earned during the last year? (Note: Your answer is a dollar amount and should include a dollar sign)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Tom and Sandy have set up a sinking fund in order to have $21,000.00 in 5 years for their child's college education. How much should be paid monthly
into an ordinary annuity earning 7.46% compounded monthly so that they reach their goal? How much interest is earned during the last year?
(Note: Your answer is a dollar amount and should include a dollar sign)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad207c23-1045-4bdd-97f4-e0fd0c202ec6%2Fa989c09f-89ff-4145-a2ef-3b6bc6871d5b%2F92p3n1n_processed.png&w=3840&q=75)
Transcribed Image Text:Tom and Sandy have set up a sinking fund in order to have $21,000.00 in 5 years for their child's college education. How much should be paid monthly
into an ordinary annuity earning 7.46% compounded monthly so that they reach their goal? How much interest is earned during the last year?
(Note: Your answer is a dollar amount and should include a dollar sign)
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